Palmer's party hits another hurdle

Clive Palmer has hit another a hurdle in trying to register his own party ahead of the federal election.

Mr Palmer says the Australian Electoral Commission (AEC) has rejected his party again on a technicality.

On Sunday, he changed the party's name from the United Australia Party to the Palmer United Party to avoid a legal battle with the AEC.

On Monday night, he issued a press release saying the AEC had rejected the Palmer United Party because it had too many members.

"The party submitted a list greater than 700 members and the AEC then advised they would only accept the application with 550 members," he said in a media release.

Mr Palmer said the AEC's actions are in breach of section 41 of the Australian Constitution, which states that no person should be prevented by any laws in the commonwealth from voting at elections for either houses of parliament.

He said the AEC was being unfair and arbitrary in trying to limit his party's members.

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The party has resubmitted an application with 550 members in a bid to meet the Monday registration deadline ahead of the September 14 federal election.

However, Mr Palmer said he would be instructing his lawyers to seek a declaration from the High Court or the Federal Court requiring the AEC to properly consider the entire membership of his party within the next 60 days.